MOBILE NUMBER PORTABILITY

MOBILE NUMBER PORTABILITYBy:

Ashutosh KalraAshwini Kumar Gogoi Esha Malhotra Jeet Khushhal Gupta Kirti Sharma 1MNPWhat is MNP

Why MNP

Challenges

Impacts

Live Example of MNP

What will we covering2MNPEvolution of Telecom In IndiaGo-ahead to the CDMA technologyINDIA Private players were allowed in Value Added ServicesNational Telecom Policy (NTP) was formulated199219941997Independent regulator, TRAI, was establishedNTP-99 led to migration from high-cost fixed license fee to low-cost revenue sharing regime199920002002BSNL was established by DoTILD services was opened to competitionInternet telephony initiatedReduction of licence fees2003Calling Party Pays (CPP) was implementedUnified Access Licensing (UASL) regime was introducedReference Interconnect order was issued2004Intra-circle merger guidelines were establishedBroadband policy 2004 was formulatedtargeting 20 million subscribers by 20102005FDI limit was increased from 49 to 74 percentAttempted to boost Rural telephony2006Number portability was proposed (pending) Decision on 3G services (awaited)2007Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian telecom industry.ILD International Long Distance32003 VaS explosion0.75 % of revenue removed as ADC, only termination fees halved to 50 paise/minNTP 1999- Convert PCOs, wherever justified, into Public Teleinfo centres having multimedia capability like ISDN services, remote database access, government and community information systems etc.

MOBILE NUMBER PORTABILITY

Mobile number portability (MNP) allows mobile phone users to keep their number when changing from one network to another carrier

Applicable to both CDMA and GSM, as well as post-paid and pre-paid categories of clients

Is the greatest upside and improvement of network quality and customer service expected in telecommunicationsKeep single mobile number lifetime

WHY MNP ?Moving to a new city, and cityfalls in same circleCurrent network seems to be having costly calling rates.Network issue.

Main reason for leaving your current operator ?

The main reason for switching existing operator came out to be the Tariff followed by Network Coverage.6MNPSURVEYWill you change your Operator?

Indian mobile users are ready for Mobile number portability.

Almost 80% of people said they will use MNP and will change their existing operator7MNPChallenges

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Impact of MNP on Mobile Operators

Impact of MNP on Mobile Subscribers

Which new Operator you will select ?

Airtel the most preferred operator after VodafoneRef: Telecom Daily11MNP

AIRTEL - Company History1995 mobile service brand in Delhi and HP and BT acquires a stake1996-97 Formed Bharti BT VSAT Ltd1999-2000 Acquires JT Mobiles in Karnataka, AP and Punjab2001-02 Launches IndiaOne , 8 new licenses in the East, becomes largest operator, launches Airtel tune2003-04 Association with Ericsson, IBM, RIM2006-07 Forays into Sri Lanka and US, tie up with Google and Microsoft Pg 913Airtel StrategyMANTRA : Focus on Core Competencies and Outsource the rest!

AIRTELLeading global telecommunications company19 countries operations across Asia and AfricaOffers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriersHas been ranked among the six best performing technology companies in the world by business week

15MNPBharti HexacomBharti ComtelBharti AquanetBharti BroadbandBharti InfratelBharti TelemediaBharti Airtel(UK,US,Canada, Hongkong, USA, Lanka)

Subsidiary CompaniesBharti comtel - Bharti Comtel Limited, a wholly owned subsidy of Bharti Airtel Limited, [providing front end HR services,] has been recheristened as "BHARTI AIRTEL SERVICES LIMITED. Bharti Airtel Services will provide recruitment, payroll & performance management support to all Airtel verticals.Satcom Broadband- Ccom to Satcom providing broadband solutions to SMEsBharti boradband- Comsat ( max india ltd) after merging woth bharti airtel ltd, VSAT and broadband overseas16Rs 8,340.15 million raised through the IPO2002 Went PublicShares in issue1,898,101,604 as at September 30, 2008Market CapitilizationApprox. Rs. 1,371 billionP/E19.98EPS36.16

Share Capital

Some Key highlightsIncome Statement (Sep '08)(Mar '08)QuarterlyAnnualNet Sales8274.3725703.51Other Income28.43235.86PBDIT3151.0610736.89Net Profit1604.786244.20Balance Sheet Amount in Rs. CrTotal Share Capital1897.91Net Worth20241.49Total Debt6570.34Net Block19030.65Investments10952.85Net Current Assets-5922.94Total Assets26811.84Key RatiosKey Ratios - AirtelMar-08Mar-07Mar-06Mar-05Mar-04Debt-Equity Ratio0.380.540.830.60.07Long Term Debt-Equity Ratio0.350.50.760.50.03ROCE (%)34.8834.0722.5523.960.16RONW (%)39.5343.0431.8223.88-0.27Key Ratios - Industry20072006200520042003Debt-Equity Ratio0.350.210.270.340.36Long Term Debt-Equity Ratio0.30.190.240.290.33ROCE (%)9.7210.288.258.433.07RONW (%)10.1110.6210.876.760.18High debt to equity means the co has been aggressive in financing its growthROCE =PBIT/Total AssetsRONW= PAT/Net worth19Income and Expenditure(Rs. Cr)

WHY AIRTEL ?

Airtel's 3G services can also be availed with Mobile Number Portability with attractive offers.21MNP

Steps to move your mobile number to AIRTELTo begin with, you need to generate UPC (unique porting code) by sending SMS to 1900. UPC is an alphanumeric code allocated, upon request, by a mobile operator to its subscriber for the purpose of facilitation of porting of his/her mobile number to another operator.SMS to be sent : PORT to 1900. Operator SMS charges will be applicable.Eg. SMS PORT 98XXXXXXXX to 1900

After sending SMS to 1900, you will receive UPC (Unique Porting Code) as a SMS from 1901 giving 8 digit alpha-numeric Unique Porting Code (UPC) and UPC expiry date in MM/DD/YYYY format

Visit your nearest airtel outlet / showroom

Fill airtel Mobile Number Porting (MNP) form providing details likeCurrent Mobile NumberCurrent Operator nameUPC code

Submit Address & Id proof documents, self-attested photo and last bill copy of postpaid connection (if applicable) along-with filled MNP form and Customer Agreement Form

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ContinuedBuy the Airtel MNP SIM card from Airtel outlet / showroom. SIM charges, talktime value and porting charge are non-refundable in the event of cancellation / rejection of port-in request

Airtel will send an SMS on your old/existing operators SIM (existing connection) intimating about the porting date and time, i.e. the date and approximate time till when you can continue to use your existing operators SIM card.

There will be a 2-hour no service period which will begin after the porting time as given above. The no service period will be between 12 midnight to 5 am during which your mobile service will not be active on any SIM. All efforts will be made to ensure that this no service period causes minimum inconvenience to you

After the no service period, you can replace your existing operators SIM card with the new airtel SIM card in your handset

Once your Airtel SIM card is activated you would be ready to enjoy airtels high-quality network, innovative value added services and best-in class customer service using your existing mobile number.

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KEY POINTSToll Free Number 1800 103 1111

Nominal porting fee of Rs.19 at the time of making the porting request

MNP would be available only within the same telecom Circle (licensed service area) i.e. you can switch mobile operators within your telecom Circle only. Example a customer from Delhi telecom Circle can switch operators within Delhi telecom Circle and not outside Delhi telecom Circle.

Offers:Those who recharge their mobile with 27 rupees will get life time validity along with 1 paisa per second pulse rate for all local and STD calls. This offer remains for one year. Those who recharge with 222 rupees will get full talktime24MNP

AIRTEL GROWTH RATE25MNPFor the current yearConsumers allowed to switch operators only 90 days after a connection is activated.

Consumers allowed to change operators within their registered circle only (i.e. if you are within the Gujarat circle you cant shift to a Karnataka circle and so on)LIMITATIONS to MNP

MNP StatisticsFrom 20thJan 2011 till end of February2011, source TRAI

All India MNP Port-in / Port-out Data

SWOT ANALYSIS AppendixList of Codes for Service Providers

Appendix

List of Codes for Service Area AppendixMNP - SLABusiness days: Excludes Sundays and state HolidaysCalendar days: Includes Sundays and state Holidays.Port Validation Time: 24 Business hours Hrs. Maximum allowed Time difference between message 1002 and message 1003.Port cancellation Time: 24 Hrs Business Hours. Maximum Time difference between message 1001 and 3001.Port Deactivation and Activation: 1 Business hour each. Total 2 hrs.Non Payment disconnect Initiation : 89 calendar days. Maximum time allowed between 1010 and 7001.Non Payment disconnect response time: 15 calendar days. Maximum permissible time between 7001 and 7003.Port Termination Time: 90 calendar days/3 MonthsRe Port In Time: 90 days from the time the number is broadcastedThank you !!